Quick home sales review

January Pending home sales, measuring contract signings of existing homes, fell 4.6% m/o/m, worse than the estimate of down .9% and follows a 4.1% decline in December. The index have now fallen below the Covid low and stands at the lowest level since this index first began in 2001.

The NAR tried to blame the possibility of “the coldest January in 25 years” in hindering sales which I think is nonsense. In fact, sales rose in the Northeast and fell the most in the South. Reality speaking, they got this right “it’s evident that elevated home prices and higher mortgage rates strained affordability.”